Generation Z Demystified: Who They Are and Why They Matter to Marketers

• Generation Z: Who Are They and Why Should Marketers Care?
  • The Three Subgroups of Gen Z
  • Younger Gen Zs (12-15 years)
  • Middle Gen Zs (16-20 years)
  • Older Gen Zs/Young Millennials (21-27 years)
• The Future of Marketing with Gen Z
  • A Closer Look at Gen Z

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In the fast-paced world of marketing, staying ahead of generational trends is crucial for crafting effective campaigns. Among these generations, Generation Z stands out as a unique and influential cohort, making up 40% of today’s global consumers and holding a spending power of $140 billion. 

Born between the late 1990s and early 2010s, Gen Z is rapidly becoming a dominant force in the marketplace. Growing up with frequent internet access, this constant connectivity has shaped their expectations for instant access to information and services, making traditional marketing approaches less effective. 

Additionally, Gen Z is one of the most diverse generations to date with 48% identifying as racial minorities, highlighting the need for inclusive and representative marketing strategies.

Understanding who they are and how they behave is not just an advantage—it's essential for any marketer aiming for long-term success. 

In this article, we'll explore the distinct characteristics of Gen Z, delve into their behaviors and preferences, and explain why they should be at the forefront of every marketer's strategy.

Gen Z is a dynamic and diverse generation, but to effectively engage with them, it’s helpful to understand the distinct subgroups within this cohort. Each subgroup—Younger Gen Zs, Middle Gen Zs, and Older Gen Zs/Young Millennials—has unique characteristics and behaviors that require tailored marketing approaches. 

“Generation Z represents the largest generation of consumers yet: accounting for $29 billion in direct spending already” (Influencer Marketing Hub, 2024).

By delving into the specific traits and preferences of these subgroups, marketers can develop strategies that resonate more deeply and drive meaningful engagement. 

“Gen Z's economic power is progressively growing, with young individuals and professionals possessing a substantial $360 billion in expendable income. This escalating figure prompts businesses to navigate the challenge of marketing to this demographic, given their distinct spending behaviors compared to prior generations” (Forbes, 2022). 

Let's explore each of these subgroups in detail to uncover what drives their purchasing decisions and brand loyalty.

Younger Gen Zs are in elementary and middle school. They are dependent on their parents and although they don’t have their own money, they are significantly driving purchasing decisions through their influence on household spending. “93% of parents today say their Gen Z children influence household purchases” (Influencer Marketing Hub, 2024).

These young consumers are heavily influenced by social media and their peers, often dictating the brands their families engage with. “Seventy-five percent of Gen Zers say that they receive most of their information on social media” (Sheer ID, 2023). 

Marketers targeting this subgroup should focus on creating engaging, educational, and entertaining content that resonates with both the children and their parents.

This group is in high school or just starting post-secondary education. They may be getting their first jobs and just starting to understand what brands they like. Because they generally won’t have rent or major costs, they can be big spenders on fashion, technology, and entertainment. 

“Gen Zers spend almost $167 a month on expenses related to socializing. Families of Gen Z students spend about $1,600 per child on back-to-school shopping” (Sheer ID, 2023). 

Middle Gen Zs are forming their brand loyalties and preferences, making this a critical time for brands to establish a connection through personalized marketing and strong brand values that align with this cohort’s interests and beliefs. 

“Gen Z consumers are willing to pay more for products from brands that actively support social causes.” (Elvtr, 2024). 

Older Gen Zs are typically in college or have their first full-time jobs. They probably are having to live on a budget for the first time, which impacts their purchasing decisions. This group is more financially independent and making significant life decisions, such as moving out and purchasing big-ticket items. 

“Gen Z tends to spend their money in key areas. This generation purchases items on social media more than any other, and they are more likely to research products online before making a purchasing decision” (EcoCart, 2024). 

Marketers should focus on value-driven marketing strategies, offering discounts, loyalty programs, and demonstrating how their products or services can help solve everyday problems or enhance their quality of life.

“The COVID-19 pandemic has significantly influenced Gen Z's spending habits. The shift towards online shopping, increased adoption of contactless payment methods, and a greater focus on sustainability in consumption patterns have become more pronounced among Gen Z consumers in response to the pandemic” (Forbes, 2022). 

Understanding the nuances of each cohort — and what matters to them — is critical to brand engagement. But so is recognizing the things they have in common.

In conclusion, Generation Z presents a multifaceted landscape for marketers, encompassing three distinct subgroups—Younger Gen Zs, Middle Gen Zs, and Older Gen Zs/Young Millennials—each with its own set of preferences, behaviors, and economic influence. While Younger Gen Zs wield considerable indirect spending power through their influence on family purchases, Middle Gen Zs are beginning to form lasting brand affinities, and Older Gen Zs/Young Millennials are navigating financial independence and significant life milestones.

For marketers, embracing the diversity and dynamism of Gen Z means recognizing the need for tailored strategies that resonate authentically with each subgroup. Whether it's through engaging content that educates and entertains, personalized marketing efforts that align with evolving brand loyalties, or value-driven propositions that address real-life challenges, understanding these nuances is essential for building long-term connections. Moreover, leveraging digital platforms and acknowledging the collective shift towards sustainability and social responsibility can further enhance brand relevance and appeal across all segments of Generation Z.

In essence, as Generation Z continues to shape consumer markets with their unique characteristics and spending habits, marketers who embrace flexibility, inclusivity, and innovation will be well-positioned to capture their attention and loyalty effectively. By staying attuned to the diverse needs and values of each subgroup within Gen Z, marketers can navigate this influential cohort with precision and foresight, securing a prosperous future in the evolving landscape of consumer engagement.

Want to understand Generation Z better? Explore our blog for in-depth insights into this vibrant community of young consumers. 

Our mobile-first technology enables Copper to gather comprehensive quantitative and qualitative data and gain invaluable insights. Whether you're a senior marketer, customer insights professional, or a brand strategist, we can help you and your brand connect more effectively with Gen Z. 

Contact us today to learn more.